August 13, 2018

Customs agents in Shanghai have refused to release a shipment of American-made Mercedes-Benz SUVs because of what they have described as a "safety risk."

Ostensibly, the Mercedes GLE and GLS models have a problem with their rear brakes that authorities want fixed before they are allowed into the country. But the timing of the move, just days after the Trump administration raised the stakes in its trade battle, triggering the Chinese to swat back with new tariffs on products that include American-made autos, has many observers raising eyebrows.

"This, unfortunately, appears to be part of a tit-for-tat in an escalating trade war, and it could reach crazy levels," warned Joe Phillippi, head of AutoTrends Consulting and a long-time Wall Street automotive analyst.

Read more:

https://www.cnbc.com/2018/08/12/auto-industry-caught-in-the-trade-war-crosshairs.html